0001193125-25-267117
SEC filingWarrior Met Coal's Notes reveal $59.4M remaining buyback authorization, $82.5M finance lease liabilities, and a new $143M ABL facility.
As of September 30, 2025, Warrior Met Coal held $336.3 million in cash and cash equivalents, with an additional $56.2 million in short-term investments and $2.0 million in long-term investments. Total debt stood at $154.1 million, consisting of $156.5 million in Senior Secured Notes (net of $2.4 million debt discount) and no borrowings under the Amended ABL Facility. The Company had $140.5 million of availability under the Amended ABL Facility (net of $2.5 million in outstanding letters of credit). Shareholders' equity was $2,118.0 million. Inventory increased to $219.1 million from $207.6 million at year-end 2024, driven by a rise in raw materials, parts, and supplies.
The Company has various transportation and throughput agreements with minimum tonnage guarantees. As of September 30, 2025, no liability was recorded for these minimum throughput requirements. Finance lease liabilities totaled $82.5 million, with future payments of $94.9 million (including $5.9 million for signed but not yet commenced leases). The weighted average remaining lease term for finance leases was 66.7 months. The Company also has royalty obligations on leased mineral reserves, with coal royalty expenses of $58.8 million for the nine months ended September 30, 2025.
During the nine months ended September 30, 2025, the Company paid $13.6 million in dividends ($0.24 per share). The Board has authorized a stock repurchase program with $59.4 million remaining as of September 30, 2025. Capital expenditures totaled $226.1 million, primarily in the Mining segment ($222.6 million). The Company also invested $71.8 million in deferred mine development costs and $9.4 million in acquisition of leased mineral rights. Debt remained relatively stable, with $48.8 million in proceeds from equipment financing and $28.0 million in principal repayments of finance lease obligations.
The Company operates a single reportable segment: Mining, which includes Mine No. 4, Mine No. 7, and the Blue Creek mine. For the nine months ended September 30, 2025, Mining segment revenue was $903.4 million, with segment profit (Segment Adjusted EBITDA) of $191.7 million. Cash cost of sales (exclusive of D&A) was $705.7 million. The Company also reports 'all other' revenues from natural gas sales and royalties, which totaled $22.7 million for the nine-month period. Customer concentration is notable, with Customer A representing $105.1 million in revenue for the nine months ended September 30, 2025.
Operating cash flow (CFO) for the nine months ended September 30, 2025 was $153.2 million, a sharp decline from $313.2 million in the prior-year period. The drop was driven by a significant decrease in net income ($34.0 million vs. $249.5 million) and a smaller working capital inflow ($14.6 million vs. $52.6 million). Non-cash add-backs remained substantial, with depreciation and depletion of $132.1 million and stock-based compensation of $15.3 million.
Capital expenditure intensity remained high at $305.9 million, largely due to continued investment in the Blue Creek growth project ($171.2 million). This resulted in negative free cash flow of approximately ($152.7 million) when subtracting capex from CFO. The company funded this shortfall through cash on hand and $48.8 million in equipment financing proceeds.
Capital returns to shareholders were limited to $13.6 million in regular quarterly dividends, with no share repurchases or special dividends during the period. The financing cash flow line also included $28.0 million in principal repayments of finance lease obligations and $9.4 million in tax payments related to net share settlement of equity awards.
Anomalies: The large swing in net income (down 86%) is the primary driver of the CFO decline, while working capital changes were less favorable than the prior year. The company's cash balance decreased by $155.0 million to $336.3 million.